Nextera leaves the Concentrated Solar Power in Spain

The PP government policy has cost 5,000 million euros to the CSP in Spain.

The U.S. group Nextera, leading U.S. renewable energy company, has accrued $ 342 million for its investment in Spain.

The company, formerly known as Florida Power, threatening to leave the country and stop paying the bank that financed its business in Spain since regulatory changes have been approved by the Spanish government on energy issues that have affected the business predictions.

Nextera plans to build several concentrating solar power plants in Extremadura. In a recent regulatory filing with the U.S. market, SEC, Nextera reports that the carrying value of its CSP projects in Spain amounted to $ 800 million, but that the current valuation is down to 500 million.

The difference, says Nextera, is that in the first quarter, “the Spanish government enacted a new law that adversely affects 99.8 megawatt facility.” Following these legislative changes, the company is studying “negotiate with banks to restructure debt, abandonment of projects or sale”.

The U.S. group created a Spanish subsidiary, Nextera Energy Spain, in 2008, for the construction of concentrated solar power plants. That year the group agreed with the Government of Extremadura commissioning two solar thermal power plants in Navalvillar Pela, Badajoz, which involved the creation of 100 jobs and an investment of 600 million euros. The company manages projects through Solar Thermal Plant societies of Extremadura.

“It is true that in recent accounts Nextera Energy has made a provision for losses due to legislative changes in Spain”, the company said. “Our project in Spain is near completion, however is facing financial challenges as a result of recent changes in rates made by the Spanish Government, which primarily affect the project’s economic forecast,” they added.

The group also noted that after “extensive analysis” and according to “accounting standards” has concluded that “our assets must be valued at least $ 300 million [in the SEC informed the company aims 342 million including taxes]. Currently the project in Spain continues its construction. ”

“The Spanish government has approved two more cuts to incentive mechanisms of electricity from renewable sources” say the Spanish association of solar thermal industry, Protermosolar. Law 15/2012 “has introduced a tax on gross receipts from the sale of electricity by applying a fixed rate of 7%” they say. The second measure, Royal Decree-Law 2/2013, “changed the update settings of incentives, to change the reference for a new methodology that produces a pay decrease over time.”

Nextera Energy Group presents itself as the leader in the U.S. in renewable energy, with interests in wind, solar and nuclear. Manages 90 wind energy projects in the U.S. and Canada, and nuclear plants, solar and hydroelectric.